The manager of the world's largest bond fund explains to Barron's Online Editor Jack Otter why he likes inflation-protected securities as well as bonds from two nations south of the border.

This transcript has been automatically generated and may not be 100% accurate.

I ... on our own or online your Barron's Roundtable ... Bill Gross ... member of the roundtable also the chief investment officer to be co chief investment officer ... of Pimco and manager of the world's largest bond fund ... Pimco Total Return ... affect your bill thank you Jack ... ah so we've been talking a lot of big picture issues in the round table I and of course corporate profits are very important issue for the stock market but also for the Humvee ... he had an interesting idea passed on the fence ... some of the ... things are going into corporate profits ... and also ... how that will affect the economy going forward ... what I can think and corporate profits of the past ... ten years have been ... informed significantly by ... now ... lower ... wages ... relative to ... completion ... by low interest rates and interest expense ... and and ... and and went to some extent but it did but ... corporate profits come out that actually ... runs a double digit levels in the car itself ... and it's not ... I'm now also has been so much talk about on all the pump prices are going up yields have been going down now and ... basically zero ... and in some areas ... Apple was cheering Lance ... Pombo now because it still hasn't worked ... of course the ten year Esprit up in recent weeks amid talk that ... maybe this is only the turning point ... what's your view ... one thing as long as the the the and that's the big By and the offense the promoter of the ... artificial bubble ... in bond prices for the door to ... tangible asset ... disposal and the Fed buys eighty percent of what the Treasury issues and that's what they're doing ... it to a certain extent than one hundred percent of the long-term on is that the Treasury ... so ... if you have a perpetual by her ... then and ... ultimately the bubble itself ... and ... could continue to grow as opposed ... to pop so it ... basically is down to what the Fed will do for Nanking moved to how long will continue to write ... checks ... to in the sense that that something so the the top of the ... six point five percent unemployment is the target and we're ... so we estimate that up when we don't see danger in the bond market we do see ... artificially low heeled shoes ... so as an investor obviously are not Guinea get a big return in terms of yield ... on bonds ... and you're probably not get much of it ... the growth in terms of capital appreciation ... the same time you want some shock absorber ... in your portfolio you can go all equities are although overall real estate in awe so in what areas of the bond market he thanked our stake was the right to ... work ... well with everything because there's an inflationary bias to this church going ... for them ... in ... it and use the two thousand and fourteen fifteen sixteen ... and the date of portfolio inflation protected securities ... um no would be and and and an equity ... investment because you are confident ... he can play ... an investor can also look outside the country and comes in ... Mexico and Brazil with yields are ... much higher since Mexican seven percent in the so the night ... and ... the sale becomes a question of ... when the last reunion and they should take some accounts the ... States will attack your ... securities